Simply put, it is hard to understand the dynamics of a balance sheet. Especially if you don’t have hands-on experience of preparing it before, the process is going to be overwhelming. In other words, you need to embrace a plethora of assets and liabilities, which are...
The Company stockholders’ equity also known as shareholders’ equity is an account contained in the balance sheet. It expresses the amount the owner or owners of a company has invested in the business over time. In this article, you will get to understand...
The capital structure of a company speaks a lot about the financial position and future prospects of growth. The capital structure of a business entity represents the source of funding. More generally, it is recommended to keep the debt financing at a lower level as...
Retained Earnings When a company is formed, the main objectives behind setting up a business are earning profits and expanding the business in the future. Profits are the lifeblood of any business, either sole proprietorship, partnership, or corporation. A business...
The financial statements of a company tell about different aspects of the business. Financial health, future growth prospects, underlying problems, expenses, revenues, liabilities, and assets are shown in income statements and balance sheets. Income taxes and...
The International Accounting Standards require companies and business entities to report their financial information in their financial statements. The balance sheet is the health statement of a business entity that reflects the financial obligations, assets, and...
